What will happen to those of us who can’t afford to pay in to a pension?

[whatnooow]

I’m starting to get a bit worried about how we are supposed to support ourselves as we get older as we basically live hand to mouth each month.

My DH and I are minimum wage workers and had to come out of the company pension contributions about 7 years ago to be able to get by, day to day. we’re both early 40s and are both knackered already. Another 30 years will definitely kill us off!

Will we just have to work until we drop dead? What if we can’t work due to ill health, but not actually disabled? Luckily we will have paid the mortgage off in about 20 years, but how will we survive, pay bills, buy food etc?

Neither of us will receive any inheritance. Time feels like it’s speeding up and I’m very worried.

We are the same @whatnooow

My friend is in this situation. We worked it out that with his full state pension and housing benefit he will be no worse off than he is currently working. Look at the benefits.

Have you looked into an apprenticeship? My company (public sector) runs a handful every year - I always thought they were solely for teens fresh out of school, but apparently that’s not the case (at least, not where I work) and we always get a few middle-aged people applying! You would still get paid minimum wage. They also cover a huge range of careers nowadays - we’ve just recruited apprentices into our finance, HR and business improvement departments!

As pp said get into public sector as that’s the only way of getting a decent pension really. Although unfortunately they are not as generous as they used to be.

Who knows what will happen to the state pension, it’s not affordable now so the age will keep going up.

Sounds like you could have extended your mortgage term slightly to afford that pension. Or you could have moved to a cheaper house. That's how you afford the pension. The fact you even have a mortgage when you are both on "minimum wage" is pretty good going? Lots still have to rent when on minimum wage. You're incredibly lucky in that respect

Can I just ask - why will you always be a low earner? What is stopping you progressing or changing jobs to a better paid one?

It’s more likely that the state pension will one day be means tested. When it was first introduced few people had houses owned outright or decent savings.

The formula was always that workers of the day paid for that generation of pensioners. National Insurance pot was also not ring fenced and surplus been plundered by successive governments. Public service job pensions also overly generous and wholly unsustainable.

Likely age will rise again (though hope folk resist this as it’s already one of highest/least generous schemes) and so whilst there is a lot of uncertainty, it’s pretty much inevitable big changes are coming. I just hope those who own homes won’t have to use up their equity (as happens in care) before they get a new state pension in future.

It’s more likely that the state pension will one day be means tested. When it was first introduced few people had houses owned outright or decent savings.

Buy younger generations are far more likely to be renting into retirement & many with mortgages will still be paying them off.

triple lock should be paused now ridiculous no government has the guts to do it.

I'm 55 retraining as a driving instructor, pay excellent
I have no pension privately anc am a single parent. Look at this.

I'm so worried about this. I'm 55 and have only ever worked in low paid jobs. I will only have my State Pension (if we're still entitled to it!!). I'm a single woman and have only ever rented so have not been able to save in a private pension. No wealthy parents to fall back on. I will be working until I drop.

I know, surely you could just get a better job, or buy property to rent, sell drugs have a side gig, become a influencer. FFS. Is it too much to ask that people who work full-time all their life in minimum wage jobs get a decent retirement. I'll probably work until I'm dead.

My Saturday job is now my career and I earn over 100k in a retail business with just GCSE’s at 39. So yes, yes you can.

Exactly. Some people just don't live in the real world.

One thing I have learnt is that a work pension is free money - your employer matches your contributions and you don't pay tax (plus sometimes NI) on the amount you contribute. ie: the £60 a month you pay into your pension only actually costs you £40, but in total you actually get £120 a month into your pension!

I would rather save money elsewhere, savvy shopping, supermarket apps & loyalty schemes, cashback sites,, using your employee benefits schemes to buy gift vouchers at discount, getting the best deal on petrol, round-ups, stoozing etc to be able to afford this. I save or make approx £100-£200 a month doing all this!

Wow, what is this you do?

https://www.retirementlivingstandards.org.uk

I don’t know if anyone has pointed you to this, but I would recommend looking at this to get an idea of what you might need.

It’s not too bad for couples with two state pensions but relies on you both being alive and together. A single person won’t have a minimum standard of living without more (although would probably get pension credit).

Saving into a pension is v tough if low income, but even the minimum contributions might help. Or finding a public sector type job as the pensions are generous and secure.

Don’t stress too much as you have many years to go!

Ive done this I pay 8% of my wage and my employer pays 14% into a private pension. We have an app where we buy vouchers so I save 5% on my weekly food shop.

Sell house downsize and release equity - that’s the whole point of home ownership in the end - take out the biggest mortgage you can afford for the biggest property and release/sell it all to fund retirement

In your situation, if you are private renting, I would contact your LA for over 55 housing. Many LAs have decent stock, partly because they were not sold off under right to buy and partly because the housing turnover is higher as tenants die more regularly due to old age.

If you already have a LA property, and only state pension, you'll get housing benefit which will cover your rent. The LA will cover repairs to your property (unlike OP who will need to fund these) so you shouldn't starve.

Realistically if you are on a low income you're not going to be able to save enough between now and 68 to off set the housing benefit. You'd be better off, if you have spare cash, buying jewellery and sell it when older if you need a cash injection......

It is renters in the private sector and house owners who will struggle if they only have state pension as housing benefit is unlikley to be sufficient to cover private rents (in my area one bed flats are about £500 a month more than LA rates) and I don't think there is any help for homeowners to repair their properties.

Not if you’re in social housing! Set for life!

Im in private rented (been on the council house register for years!) but as i have no children I am highly unlikely to get a council house. Over 55s social housing within a 30 mile radius is as rare as hens teeth unfortunately. Thank you for your suggestions though x

No, for a lot of people there really isn’t.

MNers as a whole don’t seem to realise how many minimum wage jobs there are out there, with absolutely no scope for promotion. Cleaners, supermarket staff, factory workers, coffee shop and restaurant staff; all the people who enable you to have a nice life on a daily basis are getting paid jack shit.

Not everyone is fabulously clever with multiple degrees. A large number of people are “just” average, and are happy and grateful for a job that houses them and pays their bills.

Even people with degrees will be on minimum wage jobs or not much above. The company I work for pays just above minimum wage for a high-pressure shift job requiring a degree and foreign languages. We have lots of Oxford and Cambridge graduates too.